Will Irs Form 13844 Toggle 2025

Music, hi and thanks for stopping by. I'm Larry Weinstein, both a CPA and the founder of Solve My Tax Problems based in Houston, Texas. Today, I wanted to answer the question: why won't the IRS approve an installment agreement? The reason the IRS won't approve an installment agreement is usually for one of three reasons. The first reason being that you haven't filed all of your tax returns. When the IRS grants you an installment agreement, what they're doing is taking all of the tax balances due for all prior periods, wrapping them up in a neat little package, putting a bow on top of it, and letting you pay off the loan through installment agreements. Essentially, it's a loan that the IRS is giving you. But for the IRS to do that, you have to have filed all of your taxes. They need to know if there are any years in which you owe taxes, so they can include it in the installment agreement. The reason for this is that by entering into an installment agreement with the IRS, you are agreeing on a going-forward basis that while the installment agreement is in effect, you're going to file and pay all of your taxes on a current basis. So, in other words, you have to have all of your taxes filed to get the installment agreement. Because if you get the installment agreement and one of the years is later filed, generating new taxes, it's going to terminate the installment agreement. The second reason the IRS will not grant an installment agreement is typically because all of the estimated tax payments that you made have not been made. If you're self-employed or have significant investment income, usually estimated tax payments are required. Once again, if you fall into a subsequent year,...